EMEA

Capital Calls: Beijing’s anti-corruption drive

6 Feb 2024

Concise views on global finance: President Xi Jinping’s crackdown on the country’s financial sector threatens to derail efforts to boost confidence in the world’s second largest economy.

Capital Calls: Estée Lauder, European banks

5 Feb 2024

Concise views on global finance: The cosmetics giant behind Le Labo is cutting jobs and redoubling restructuring efforts, but the changes only go skin-deep; Santander and Lloyds are under pressure after a report they banked entities controlled by a US-sanctioned Iranian company.

TikTok and Universal will stage reunion tour soon

5 Feb 2024

The music giant’s decision to yank its catalog off the social-media app hurts singers and bands more than either business. And yet mixing tunes, both new and old, with a powerful algorithm is harmonious. There are plenty of financial reasons for the duo to get back together.

Novo digs $11.5 bln moat around weight-loss jewel

5 Feb 2024

The pharma giant’s parent is buying US manufacturer Catalent. It helps Novo Nordisk keep up with soaring demand for obesity drugs, and makes it harder for rival Eli Lilly to catch up. With such limited capacity, Catalent’s rivals like $4 bln ROVI may soon be in play.

Red Sea delays are no panacea for European EVs

5 Feb 2024

Suez Canal blockages mean Chinese electric vehicles take longer to get to Europe. But these don’t look bad enough to close the price gap with EU rivals. The most likely upshot is a slower rate of domestic EV adoption, rather than a change in the competitive pecking order.

UniCredit has ways to keep defying gravity

5 Feb 2024

The 50 bln euro bank pledged to match record 2023 net profit this year, and to keep showering investors with cash. CEO Andrea Orcel can use lower costs to offset higher loan losses and costlier deposits. If he can do so, and avoid flashy deals, his valuation can rise further.

Sovereign debt workouts need knocking into shape

5 Feb 2024

Countries such as Zambia are twisting in the wind because of long delays in restructuring their debts. It is harder to get all creditors to agree now that China is a big lender. A more integrated approach that better manages laggard lenders could lead to swifter results.

Italy is fighting a rearguard battle on Stellantis

2 Feb 2024

Rome may invest in the $73 bln carmaker. Matching France’s 6% stake would cost 4 bln euros, hurting the government’s privatisation effort, and may spook Italian business. Saving jobs at the former Fiat is a natural concern, but Italy is no longer the group’s centre of gravity.

Budget deal leaves EU isolated in Ukraine aid push

2 Feb 2024

The EU avoided a crisis by salvaging its 50 bln euro funding plan for Kyiv after Hungarian strongman Viktor Orbán fell in line. Europe is, however, isolated in its drive to support Ukraine, as long as a $61 bln similar aid package is stalled in the US Congress.

Unilever is test case for ‘edible stranded assets’

2 Feb 2024

The $123 bln consumer goods group relies on brands that look vulnerable to sugar taxes and changing eating habits. Like oil majors facing lower demand, Unilever and others like Nestlé may have to write down the value of these assets. Unfortunately, the problem defies easy fixes.

Capital Calls: Ferrari closes gap with Hermes

1 Feb 2024

Concise views on global finance: The Italian carmaker’s valuation looks more like its luxury rival Hermes after its record results.

Deutsche Bank and BNP try on each other’s clothes

1 Feb 2024

The $27 bln lender is less highly valued than its $72 bln French peer and its recent past is more troubled. But Deutsche just upped its outlook, while BNP’s got worse. Neither are investor stars, but the German bank’s ambitions for its investment bank look easier to realise.

Julius Baer pops myth of private bank prudence

1 Feb 2024

CEO Philipp Rickenbacher is leaving the $12 bln Swiss wealth manager after bad lending led to a $700 mln writedown. It’s a reminder that serving rich clients is not risk-free. Money managers will have to provide more clarity on loan books or give up lucrative but dicey practices.

Iliad rebuff raises the bar for Vodafone in Italy

31 Jan 2024

The UK telco rejected its French rival’s 10 bln euro offer to merge operations in the tough southern European market, a fresh snub to Xavier Niel. CEO Margherita Della Valle needs to quickly plan another deal. Tie-ups with Telecom Italia, Swisscom or Wind all have complications.

Capital Calls: Paramount takeover bid

31 Jan 2024

Concise views on global finance: Media mogul Byron Allen, whose company owns The Weather Channel, is offering to buy the TV and film conglomerate for $30 bln. Even if he doesn’t become the next owner, his presence should help get a sale process moving and plump up the price tag.

Santander progress yet to show up where it counts

31 Jan 2024

The $65 bln lender has already hit its 2025 profitability targets, yet still trades below tangible book value. Investors may fear risks like European rate cuts, or they might not buy Santander’s strategy. Until they award a higher valuation, boss Ana Botín’s job is incomplete.

Economic slack gives Bailey cover to cut rates

31 Jan 2024

The market wants the Bank of England to lower borrowing costs soon. Governor Andrew Bailey is set to keep them steady on Thursday because inflation remains high. Yet sub-par economic performance in the next few years could pave the way for easier monetary policy from May.

Capital Calls: HSBC, Delivery Hero

30 Jan 2024

Concise views on global finance: The global bank will pay a 57 mln pound penalty for misreporting depositor protection data; the Frankfurt-listed meal delivery company has sold a 4.5% stake in rival Deliveroo, at a loss.

Diageo investors seem braced for a beerier future

30 Jan 2024

The $78 bln drinks giant’s sales of spirits fell in the second half of 2023, but Guinness held up. If investors thought Diageo could hit its sales targets, it would be worth more. One takeaway is that they think more of its future revenue could come from less highly valued beer.

Shipping giants can withstand Red Sea crisis

30 Jan 2024

Houthi attacks near the Suez Canal are slowing global trade. In this Exchange podcast, Zvi Schreiber, CEO of shipping platform Freightos, discusses how the sector was caught by surprise, but excess container ships and more air cargo capacity are helping limit the immediate pain.